The Ramsey Show - App - How Do I Protect My Savings From Inflation? (Hour 1)

Episode Date: June 14, 2021

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Music Music Music Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show. Where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. Ken Coleman, Ramsey personality, host of the Ken Coleman Show, is my co-host today as we talk about your life and your money. Open phones at 888-825-5225. That's 888-825-5225. Ken on the Ken Coleman Show talks about careers and jobs and getting in the position that you want every year,

or that you want for the rest of your life, that is. And, Ken, this article that the guys handed me right before the show, they said you talked about it on your show earlier. It's probably worth talking about, the great resignation. Yeah. Surveys are saying that American workers, up to 40% of the workforce in America, is looking to change jobs this year. So here we are as we are approaching halfway through, and they're going, hey, I'm going to make a move. So you're going to see this in 2021 and 2022, a lot of people changing jobs. You talk about 25% is the low end of the

survey 40 that's an extraordinary number of people who are saying you know what it's time to make a change it's certainly brought on by the pandemic giving you a philosophical reset and saying life's too short to work at something i hate with people i hate that's right here's what happens so we know that change is one of the greatest concerns for any human being. Change is scary. It has all this unknown. And so change is really, really ugly. However, when a forced change happens to you, so let's take the pandemic.

And it was a massive change for people in largely, or I mean, arguably the largest area of their life. You think about time you spend at home with family, friends, sleeping. You think about work. That's the thing you spend most time on in your life. And so when there's a forced change, you didn't have any choice. You were sent home, either furloughed, laid off, or you were working from home. So now all of a sudden you're confronting a change that you had no choice over, and now you're dealing with that change. And so then we begin to go, oh, wow, this is huge. What other parts of my life would I like to change? And I think that's what has happened collectively.

People are going, well, I had to deal with this. What would it look like if I actually worked in a place that I really love? What if I did work that mattered deeply to me? What would I have to do? What if I changed some things to be able to get qualified to make more money? What if I paid off debt? And I think you're seeing people are going, you know what? I think it's time. I think it's time, and I'm going to move. Here's what's interesting with this. 40% of American workers are considering moving into something else,

so they're going to quit their current job. And you've got 9.3 million jobs, Dave, that are open right now. And so it is a good time is the point, because companies are needing talent. They want talent. Yeah, but if you're one of these companies with no soul. You can take advantage of people. And no, people aren't going to come. No, you're going to end up with a labor shortage. Well, we already have that.

Absolutely. I mean, you're going to end up not being able because these folks are what we're saying is, is that because of the pandemic, they said life's too short. And that's what the surveys are indicating. Yeah. That that they're not going to go to work for a company where life's too short again. That's true. They're going to go. They want to do some plug into something where they matter, where the work matters and where is something that they actually have a freaking talent at, that they're not just there to collect a check.

That's right. They have realized life is too short. Crusade-driven organizations like Ramsey. That's it. See, we all long to make a difference. I think we'll benefit from this. We will benefit from it. I'm going to tell you this.

The Ken Coleman Show and Ramsey Solutions, we're positioned to help a lot of people make this move, because now they need to know what they're looking for. Some of them don't know. They're just going, this isn't it. And so what we teach every day, as you know, Dave, on the Ken Coleman Show, is, hey, use talent as your tool. Your talent are premium tools. You do work you love.

We call that passion. You just love the work. And then that work creates a result that matters deeply to you. So when we hire people at Ramsey Solutions, here's what you've got to be. You've got to be a crusader. You have to be deeply, deeply committed to the results of hope, practical paths forward for people to turn their life around, whether it be on the Dr. John Delaney Show, with your mental and emotional health, the Ken Coleman Show, turn your career around, or turn your money life around.

And so when you come here, you better be missional, and you better care about the result of life change, hope, practical steps forward for people. Well, you won't make it through the interview process. And if you did, you won't fit in. No. If you lie to us. If you want to just collect a check. You won't be exposed because this is a different place. Yeah.

Well, I mean, we. We. We were talking about that this morning. Instead of me, we, this is how we do things. Yeah. And not everybody needs to be a we. That's true. You know?

Well, yeah. If you want to just say, well, I've got a degree in X, and so I have a talent. Yeah. And you should just pay me for delivering on that talent. Yeah. Nope. Yeah. It's not going to happen.

Nope. That's why we're getting so many developers coming. Oh, yeah we work a developer uh 40 hours a week not 80 that's right and we work a developer uh where they're writing code doing something that matters and so when they woke up during the pandemic they didn't wake up and go i hate my job they woke up and went man we've got a lot of people need our help. Yeah, that's exactly right. And so they're going, hey, I know that if I'm in here in this company coding, that it is going to be directly tied to transformation. I think that's what everybody wants is to make a difference in their work. So the net result will be for the economy overall, if this transition is accurate, if this survey is accurate, will be a huge increase in productivity.

Yes. Because people will leave jobs in bad situations that they are not good at, that they're not passionate about, and go plug into something. Yes. A, that they're good at, and B, they're passionate about in a better situation. And they'll produce more. Way more. Which, goods and services, which will help the economy overall. So really, if everyone followed the Ken Coleman rule and got in something where their talent and their passion was aligned with what they were doing every day, then the economy would boom even more.

Productivity rises and durability increases. People stay longer. Tenure. People will stay in a place where they go, my work matters. The company sees me. And Dave, you just touched on this. Underneath all of this is a massive warning to leaders and to companies that if you don't give people a connection to their work, if they can't see that you care deeply about them, because they could be in their sweet spot, talent, passion, mission aligned.

But if you have a crappy culture, they will leave you. They will leave you. And you better have a place that is healthy and you better have a place that is dominated by leaders who care for their people and people feel like,

hey, you see me. I'm not just doing work that matters to me, but I matter to you because you share how we collectively everybody rams solutions matters to the world out there that's what's special about this place and companies that don't figure this out you're going to lose talent at an alarming rate and the companies that figure this out dave are going to explode they're going to grow like crazy yeah and one of the things that they came the conclusion that I disagree with was that the worker is now demanding that they work from home.

Yeah, well, those people are going to lose. Yeah, that's not going to work. Bad idea, by the way. It's not going to work. Yeah. It hasn't worked. You could try that. All of the data is in.

That's right. And work from home doesn't equal work. No. Getting done. You can't have a great culture if everybody's separated all the time. Yeah, and we're seeing major companies that thought they were going to go that way swinging back now again. This is the third time we've gone through this. Watch this wave go back and forth.

And I've been unpopular every time because we don't work from home. We work from here with human beings in the building where we can see each other. Yep. In an uncertain world, being a good steward of your money is more important than ever. While some circumstances can't be controlled, there are items within your budget you can take charge of, such as your health care costs. For nearly 40 years, Christian Health Care Ministries, or CHM, has provided a budget-friendly means of sharing for medical bills when our members need it. Learn more by visiting chministries.org slash budget.

That's chministries.org slash budget. That's chministries.org slash budget. Ken Coleman, Ramsey personality, is my co-host today here on the Ramsey Show. You know what sucks? Living paycheck to paycheck, where you have too much month left at the end of the money. You're barely covering the bills. You're never getting ahead. You feel like a rat stuck in a wheel. Run, run, run, run, run, run. You don't have to live like this.

Stop going in circles. It's time to start making progress. Check out Ramsey Plus. This membership will show you how to make the changes you need to get the results that you want with your money. And that's because Ramsey Plus gives you complete access to our best online money courses like Financial Peace University, Know Yourself, Know Your Money, and tools like EveryDollar that actually make sense. Get out of the cycle. Start making real progress. Jump in on your free trial at Ramsey Plus today.

Text TRIAL to 33789. Text TRIAL to 33789. Open phones here at 888-825-5225. Janet starts off this hour in Pittsburgh. Hey, Janet, how are you? I'm great. How are you? Better than I deserve.

What's up? Better than you deserve. I know it. I've been listening to you and following since the 90s. Wow. But through financial peace. Yeah. Yeah.

Back in 2009 and again in 2012, when I was living with my husband, we paid off $167,000 in debt, but got right back in. I separated from him 16 months ago, got a restraining order, and the kids and I have been living on our own since then. I have two at home out of six. Wow. The other four are grown up. So I'm 56. I earn, including child support, about $57.5 a year. I have two jobs.

One is I work for a person with autism as an aide, and another one is I work in an emotional support therapeutic classroom as a paraprofessional. The second job I'm not crazy about. There's a lot of danger there. And I'm getting older. So I paid off my last debt, my car, on Thursday of last week. Way to go! Yes.

And so I'm debt free. Yay! And then I took the rest of the money from the settlement from the house that we sold during this huge market boom. We sold the marital residence and I put the rest and funded my baby step three. Good. So I feel like I took two huge steps and I don't know quite what to do. There's still some money left over. I'm putting it in a fund to save up for a down payment for a house.

Perfect. I'd like to move to Pittsburgh and move back home. Perfect. Or someplace where they have fantastic jobs like you guys do. Okay. Where you don't have to worry about a kid carrying a switchblade into school. Gotcha. You know?

Well, that's pretty well anywhere these days, but yeah. Okay. So I'm done with funding college and all of that that's you know my daughter is probably going to go into the air force we don't have to worry about that my son that lives with me pays rent and i'm trying to figure out i mean have everything budgeted i just want to figure out how to do this house thing right without screwing it up because i'm going to be going back into debt and i just got out of debt so i want to do it you know i'm thinking maybe a fifty thousand dollar house maybe 80 where is home that you're talking about moving to oh erie pennsylvania all right

and um very erie the mistake on the lake and can can you buy a house for $50,000 in Erie, Pennsylvania? You still can, but the problem is, the challenging thing is the employment market. Okay. That's the thing. Now, my one job will go with me. But my other job, you know, that's $23,000 worth of income that I have to replace. Really, with what I do, that's not hard. Who is in Erie?

I'm something better than that. I have family there, but mostly it's the familiarity. You know, I could go pretty much anywhere. That's what I was thinking. But I don't have another landing pad. That's what I was thinking. I have a girlfriend who lives down in North Carolina, but the rate of living there is so expensive. And I don't think that my second job would transfer down there.

If the job situation... I'm an aide working for my son, and that's funded in Pennsylvania. So I'm golden in Pennsylvania. Yeah. Janet, what I was going to ask you really quickly is if the Erie job situation was just a snap, it was already taken care of, would that be your favorite place of all the places you could go? Yeah. Oh, yeah.

Yeah. So how much extra money, if we remove the second job where you're in the classroom, is essentially a parapro, how much money do we need to replace on that particular job? How much? $23,000. Okay. I could drive a bus and make more than that. There's a lot you could do.

Yeah. So let me ask you this. The thing that that gives me summers off with my son, I have a 21-year-old son with autism. Gotcha. So ideally, you want the summers off. So what could you do? Well, yeah. Well, that's ideal, correct?

Mm-hmm. All right. So here's what I'm trying to walk you through. I want you to have an ideal list, correct? Mm-hmm. All right, so here's what I'm trying to walk you through. I want you to have an ideal list, okay? So ideally, if I could get a job in the school system that's not as scary as the parapro in these classrooms with some of these kids, that's ideal. But then we say, okay, let's look for what's there. Let's just not assume that, well, it's a horrible job market in Erie, the mistake by the leg. It's what you called it.

You've kind of poo-pooed the whole area. So let's see what's there that's ideal. I know, but you know that's – Yeah, I know. And so let's look at ideal, and then we look at, okay, what could I do that would still give me a life and my 21-year-old son? I mean, I'm going to work 40 hours. I'm going to make really good money.

I can make more than 23. And I think you've got to ask yourself, what can I do well? Let's just start with the tools. We look at talent here at Ramsey Solutions as a tool that I can use to do work that I enjoy. So start with, hey, I'm really organized. I'm really good with people. You need to just do a quick assessment. And I want you to go to KenColeman.com and get the career clarity guide, simple little worksheet. It allows you to get feedback from people who know you really well, so you can get some confidence on this. But just begin to identify another day job that you can do well, that's in a better environment,

and now you're there with family, you're saving up, and you're getting that house a lot quicker than you realize. But don't assume that something's not there until you dig into it, because I think there's a lot of work in the area that she can do, Dave, and make more than 23. Yeah, continue to save on your baby step 3b for a down payment on a house when you move to the area you do not have to buy a house immediately you can rent for a little while and let's get all these career boxes checked and your income and even support boxes checked and And maybe North Carolina is there. That's right.

I will tell you there are sections of North Carolina that are less expensive than Erie, Pennsylvania. So your set of assumptions there is just not accurate. So you've assumed that everything in Erie is bleak and horrible, including prices on houses, and that everything in North Carolina is the land of plenty and expensive. And neither one of those is completely true. There are some good spots that you can pick in Erie and land in and some good jobs that you can pick there. And the same would be true of North Carolina.

And so these blanket statements. Now, I do think the reason you're wanting to go to Erie and want familiar is after going through this divorce and all this pain, you want a familiar place to heal. And I'm perfectly okay with that idea. That's fine. The familiarity part of your statement was absolutely truth. That was very good. So, you know, begin to find something.

Make a move. There is nothing to, if you go rent and get a job, there's nothing to say that you don't find a better job in a different place later and move again. None of these are forever decisions. So you got to get on a path here that gets you, you know, heading in a direction of a career and a house. And those are not incongruent with where you are. I think you can get there. I really do.

Open phones at 888-825-5225. That's 888-825-5225. When you're faced with a set of decisions like that, Ken, we teach decision making in one of the leadership things in Entrez Leadership. There's a couple of things that when you get emotional, whether you're wounded, angry, whether you're hurt, whatever emotion you want to put out there, you shut down your peripheral vision and you fail to see as many options for the way around something. You get tunnel vision. And options, the more options you have when you're making any decision, the better likelihood you're going to make the right decision.

When you start saying absolutes like there's no jobs there or that area is just always expensive, these are absolute statements that are inaccurate and that's coming out of your pain. This is the Ramsey Solutions on the debt-free stage, Adam and Victoria are with us. Hey, guys, how are you? I'm pretty good. Good. Welcome. It's a pleasure to have you guys. Where do you all live? Bluff City, Tennessee. Bluff City, did you say? Yes. Okay? I'm pretty good. Good. Welcome. It's a pleasure to have you guys. Where do you all live? Bluff City, Tennessee.

Bluff City, did you say? Yes. Okay, like Kingsport area, huh? Yes. Okay, cool. Well, welcome to Nashville. Good to have you guys. And all the way over here to the other end of the state to do a debt-free screen.

How much have you paid off? $67,000 in 15 months. $67,000 in 15 months. And your range of income during that time? It's about $60,000 to $65,000. Cool. What do you all do for a living? I'm a Subaru technician at a dealership.

And I work in a deli. Okay. I thought maybe he did a voiceover. I was going to say, man, you sound great on the radio. Thank you. Thank you. He's got pipes, man. He's got pipes.

Most of my Subaru technicians don't have pipes like that, I'm just saying. Good, man. Way to go. What kind of debt was the $65,000? It was actually, let's just say half of it was student loans. And then there was a car that we basically got rid of. And then, what was it? Credit cards and tool loans.

And you did all of this in 15 months. What happened to you guys 15 months ago? Let you on fire like this. You got after it. Yeah, we did the financial peace program. And after that, my parents let us live debt-free. Rent-free? Rent-free to be debt-free, sorry.

There you go. Okay, cool. So you've been with them for a little while. Are you out yet? Well, we're actually living in one of their, what was it, the cabin. Oh, cool. So you've been with them for a little while. Are you out yet? Well, we're actually living in one of their, what was it, the cabin. Oh, okay. And so it's just basically just Victoria and I. Oh, I see.

So, you know, trying to pay all the loans off, you know, that was a feat. But now, since we basically become debt-free, we're saving up for a home. Good. Way to go, you guys. Thank you. Fun. What inspired you to take Financial Peace University? Well, her mother kind of convinced us to take the course,

and she basically said, hey, you know, we'll pay for the course. If you go, if you don't go, then you owe me money. Ah. So, you know, that's what we did. It's a fair trade. You've got to show up after I pay for it, huh you owe me money. Ah. So, you know, that's what we do. It's fair trade. You've got to show up after I pay for it, huh? Yeah. All right.

How long have you all been married? A year and a half. Oh, wow. Okay. So that's the first order of business then after marriage. Boom. Yeah. Go to financial peace, get married, get out of debt.

Just like that. Boom. How old are you two? I'm 28, 29 next month. Oh. And I'll be 31 tomorrow. Yay. All right.

And no payments in the world. Now, whose student loans was it? It was all mine. All yours. Okay. And it was your mom, Victoria, that paid for the course? Yes. So she's straightening out her son-in-law here.

Yes. I love it. That's great. I love a meddling mother-in-law. She's awesome. That's so fun. That's great. I love a meddling mother-in-law. She's awesome. That's so fun. Good for her. And good for you guys for listening.

I'm proud of you. That took a little bit of humility to do that. I'm proud of you there, Adam. That was very, very cool. And so you step in, say, we're going to get married, we're going to clean this mess up, and you just went wide open, huh? This is correct. Yeah.

So what do you tell people the key to getting out of dead is well it's just mostly uh you know when you're given a opportunity such as what we were blessed with uh you know a lot of people would not take advantage of that you know they might actually try to uh you know buy cars and all this other stuff but you know for us uh we just had to buckle down and the whole thing with you know the the beans and, you know, for us, we just had to buckle down. And the whole thing with, you know, the beans and rice, you know, with our budget, we had to get rid of the rice, and it kind of put a stress on our marriage a little bit there. Just beans, huh?

Oh, yeah. We won't ask any follow-up questions. I don't need to know any more about this. Way too much information for me. Fun, fun, very fun. so when you started taking the class what was maybe something that caught you off guard you didn't expect that maybe something you never thought of or something so common sense you're like how did i not see this i think it's more of uh you know the the snowball, you know, just learning how to actually go through the whole program. You know, that was probably, I would say, the common sense part, but it really did not, you know, register to me.

But I know when we took the course, you know, when you're looking at the big picture, you know, not the small picture, it makes sense. You know, it's like, hey, you know, if I'm debt-free or we're debt-free, you know, we pretty much just do anything we want. We don't have anybody holding us back or anything like that. Very cool. And that gave you the fire to go do it then. Yes. Way to go, you guys. I'm so proud of y'all. Thank you.

I'm so proud of you. Who are your biggest cheerleaders? My whole family. Yeah, your family. I'm so proud of y'all. Thank you. I'm so proud of you. Who are your biggest cheerleaders? My whole family. Yeah, your family. I would have to say her and her family. Yeah. All right. So it's kind of a financial peace thing, getting out of debt thing.

It's kind of a family thing for your family. Yes. Okay. Very neat. Very neat. Wow. Excellent. Excellent.

Excellent. Well done, you guys. So well done. I'm proud of you. Thank you. We got a copy of the book, The Legacy Journey So well done. I'm proud of you. Thank you. We got a copy of the book, The Legacy Journey, which is what your family has engaged in, changing their legacy. And you're part of that legacy, and now you're going to extend it on.

And we're going to give you an extra copy of the book, The Total Money Makeover, to give to other friends. And maybe you can inspire them to get on the journey with you and get to going, and they can be where you are. How does it feel now that you're completely free? Good. Wonderful. Just like that.

I love it. Oh, yeah. Very fun. Way to go, you guys. Congratulations. Adam and Victoria from the Kingsport, Tennessee area, Bluff City. Count it down. Let's hear a debt-free scream.

Three, two, one. We're debt-free. Yeah. Three, two, one. We're debt free! Yeah! Very well done. Very well done. Mary is in McAllen, Texas. Hi, Mary. How can we help today?

Hi, Dave. Thanks for taking my call. How are you? Better than I deserve. How can we help? Well, I just finished baby step three. I'm going to go ahead and start on baby step four soon. I was able to incorporate baby step six into my baby step three, so the house is paid as well. However, I'd like to open my own business, but it is pretty expensive.

My six-month savings would not cover it at all. How would I be able to get all the money I need without taking out a large loan and using the home as collateral? Let me tell you that the number one reason that 80% of the small businesses fail in the first five years? Cash flow problems. You know what cash flow problems are created by? Not paying your taxes properly, and they come down around your head, and debt.

So here's what you do. You don't open this business the way you're thinking of doing it. We have to figure out another way to get at this. What kind of business are you talking about? I'd like to open my own rock climbing gym. Okay. All right. And so that is a very high-risk endeavor. I don't mean falling off the rock.

I mean risk. I mean the business failing high risk. 100% of rock climbing gyms do not succeed. As a matter of fact, a very small percentage of them succeed because people make the mistake of thinking, I install rock climbing and people will show up, a field of dreams. If I build it, they will come. And that is complete BS. It does not work that way.

So what do you do for a living now? I'm an administrative assistant. Okay. Ken? Why the rock climbing? Tell me the why. Don't explain the whole business to me, but why did you think of that when you thought of a company? It's the only thing I ever really felt maybe passionate about the only thing i've enjoyed

doing i don't want to continue working for someone else i want to work for myself and okay so i do agree with that i want to help you do that so you do climbing you do climbs in nature now not on a wall right i? I prefer indoor over outdoor. However, the fact of the matter is you like being outdoor. You like adventure sports. You probably like hiking. Is that true or false? Yes, I enjoy that.

All right. So if you don't want to work for anybody else and you love outdoor adventure and all that type of stuff, what I'd like to see you do is stay stable. You've done such a great job getting where you are. Let's get a second job, but now this time it's not about getting out of debt. Let's get a side hustle that's in that

space and you probably will work for somebody for a season, but let's take people on hikes. Let's do some outdoor outriggers. People are doing that kind of work. Well, and find some indoor rock climbing gyms and see how you can serve them,

how you can get involved on their staff temporarily. Yeah, but I'm with you, Dave. I mean, she ultimately loves that outdoor adventure side of things. No, she liked climbing the rocks inside, she said. Yeah, I know, but we both said that rock climbing gyms aren't a good idea. So I want to get her outside. Well, I'm not sure I want to buy one. I know I don't want to go from administrative assistant to owning one that's true Ken Coleman Ramsey personality is my co-host today open phones at 888-825-5225

Ernest is in Kansas City. Hi, Ernest. How are you? Doing pretty good, Dave. How are you? Better than I deserve. How can we help? Hi.

I was just wondering what can I do to protect the money we've saved from inflation? Saved? Where is it saved? We're just in savings accounts basically right now. How much is in there? 10,000 in the house fund, about 20,000 in the emergency fund. The emergency fund you don't protect from inflation that's not what it's for

it's there just for insurance so when life happens transmission goes out somebody gets sick somebody gets laid off that's what it's for it's not it's not an investment investments have to be protected from inflation by investing at a rate of return that is higher than the inflation rate and that's what you have to do you have to make the inflation rate is higher than the inflation rate. And that's what you have to do. You have to make, the inflation rate is averaged in the last 72 years, 4.2%. Taxes add about another 2% to that. So you've got to make over 6% on your money on a long-term investment to break even with taxes and inflation.

And that's always been the case. These increases in prices have kind of recently, in cars and houses and building supplies and other stuff, has woke people up again on the dangers of inflation. But inflation's always been there to erode your long-term investing if you don't do that. And so, in other words, if you put money in a CD for 50 years at 1% or 2% and inflation is running 4%, obviously you're going backwards, and that's not handling your money well. But your emergency fund is not for that.

Your house fund is going to be spent as a down payment on your house in the next couple of years, right? Potentially, yeah. Yeah, so inflation is not going to eat that up because it's not going to be in there long enough. Where inflation gets you is where you're dealing with something that's a 10, a 20, a 40-year investment. That's where inflation gets you. It doesn't get you in 12 months. Okay.

That make sense to you? It makes sense, yeah. House prices have jumped up this year. Car prices have jumped up. But that's not going to be a standard way. We're not going to see house prices go up 20% a year for 10 years. It's just not going to happen. If it does, we've got other issues in this economy.

And that's just structurally not how we're wired in America. I just do not see that happening. But could we see it for coming off the pandemic? Can we see some of these things bump temporarily? You bet we have. Car prices are an example of that. And it's more due to shortages than it is anything else. And once the supply-demand curves equal out, it's going to slow the rate of these price increases it's not a bubble and it's not

going to burst and it's not going to go backward 50 or something like that five years from now that's not what it's going to do but this driving demand people sat at home and spent no money except on amazon for a year and when they came out of their cave they all went and bought a stinking house and they all went and bought a stinking house and they all went and bought a stinking car by the way the lumber factories weren't open making two befores and the car factories weren't open making cars so we have this tremendous shortage of supply because the factories weren't operating because there were little covids running around in the factories and nobody wanted to go in there and so so they were scared to death, and so we shut the factories down.

We suppressed the economy. So there was a shortage of two-by-fours. Not because there's this spike of demand, but because they weren't making freaking two-by-fours. There's a shortage of glue to make plywood why because there's a big run on plywood no because the glue factory wasn't open okay it's a simple thing so it's gonna smooth out because they're gearing up like crazy there's a shortage on ammunition you know why biden you can't buy bullets okay Okay? That's why. And you know what?

We're having all kinds of those of us that are firearms aficionados right now, we're having to check our ammo because they're making ammo so freaking fast at these factories trying to catch up that a lot of it's coming out defective, which is dangerous as crud. You can blow your gun up in your hand with a bad piece of bullet in there. And so, you know, just got an email on that this morning. Some friends of mine just bought some bad stuff and just about got killed with it. So, you know, but the point is the factories are gearing up like crazy trying to catch up. And as they catch up, you see how it's working again?

It's going to smooth everything out. Well, I just want people to understand inflation can get really scary to people. And remember, the media exists to freak you out. Okay? That's what it is. They're all talking about it. Trust me, it's everywhere. Inflation in big, bold letters. And if you listen close enough, Dave, you lean in, you can literally hear the headline going,

bum, bum, bum, and we're freaking people out. Here's the deal. All right? This is a short-term inflationary spike. The other boogie monster died, so now we have to have a new boogie monster. The little COVID died, so now they've got to have a new boogie monster. Let's see where we are next year as to whether or not this is true inflation hike versus just a short-term spike because of the whole supply-demand thing.

This thing's going to even back out. I absolutely think that's true, and people need to relax a little bit. Sit tight. Weather the spike in meat prices and all the things that are that are all having to do with the distribution system and everything kind of going offline it's going to take a while this was the biggest artificial shutdown in the history of mankind of mankind and so you don't just warm that machine back up it takes a little while for it to get humming well and some of these uh corporations are more worried about optics than they are actual facts.

Absolutely true. And so they're not reopening just because one crazy activist or something is going to bitch about them being open. 17 people on Twitter. Yeah, there's 17 people on Twitter still bitching about that stuff. And so they're all worried about how things look, not how they actually are. They're not really worried about somebody getting sick. They're worried about somebody bitching about them being open. That's right.

That's what it is. And so these corporations have no soul, and they have no principles and no backbone. And so then that's what's happened in these situations. And, of course, those of us that did open and did run our businesses, we're trying to kill our employees. Oh, yeah. You know, Dave Ramsey're trying to kill our employees. Oh, yeah. You know, Dave Ramsey's trying to kill his employees. Oh, yeah. Which is kind of counterproductive because I've got no employees.

I've got to go rehire them all, and it's a pain in the butt. I know. So killing them off is the problem. You don't want to kill them off. They're hard to replace. Dumb. So that's what's going on, though, man. So, Ernest, turn off the news.

Yes. Turn off the news. Quit getting your financial advice from Fox News. Yeah. Quit getting your financial advice from CNN. For God's sakes, those people on the TV in front of you all have $120,000 of student loan debt. So don't let them talk to you about economics. And they don't even know what inflation is.

It's only on the prompter in front of them. That's a fact. They don't even know what inflation is. You ever seen Anchorman prompter in front of them. That's a fact. They don't even know what inflation is. You ever seen Anchorman? Exactly. Whatever's there, they read. Right. You're getting financial advice from Ron Burgundy.

What's wrong with this picture? Right? He doesn't even know. It's just on the prompter. Yeah. And here's the scarier part. Dave, let's give them full behind the scenes. Not only is it Ron Burgundy reading something on a prompter,

a 24- to 25-year-old producer typed it in there for him. Yeah. They don't understand economics. Or inflation. See, I'm old. I remember Jimmy Carter. Gas lines. I remember real inflation.

Right. That was real inflation. That was not a supply-demand curve thrown off by a pandemic economic suppression. That's a different thing we had bad monetary policy over a decade yes from the 70s up into the 80s and we were jamming at 10 to 15 inflation rate per year for a decade there yeah i remember that interest rates at the height of that do you remember remember? That was the resulting thing that ended the Carter administration, for sure. Yeah. We had, when I was 20, let's see, 1981, I was selling real estate.

Interest rates for a home were 17%. Goodness gracious. Fixed rate, 17%. And that was the end of it. And let me just here's the interesting thing three years earlier they were 10 yeah wow when i when i got my license at 18 years old in september i remember it went from nine and three quarters to ten for the first time in modern history, we had 10% mortgage rates, and people were screaming, ready to jump out of windows that the world was coming to an end, and little did they know it was going from 10 to 17 in only about 36 months.

Yeah, just crazy. Now, that's real inflation. You don't have to worry about it on the short term, brother. You just don't have to worry about it in the short term. It's long term where inflation will kill you. This is The Ramsey Show. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast.

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